[sassy29345]

How to calculate inventory turnover without Beginning inventory

[CaptainForest]

Inventory Turnover

You can use Sales/Inventory.

If you don't have beginning inventory, just use ending inventory. It won't give you the best picture, but it will be better than nothing.

Or you can calculate beginning inventory if that is all that you are missing.

Beg Inventory + Purchases – COGS = Ending Inventory

[london_mirza]

If you can't find Beginning inventory DO NOT use ending inventory. The two are highly different numbers.. best would be to use the, Cost of Goods Sold figure amount. The right way to arrange the formula above for BI is to do, BI = COGS - Purchases + Ending Inventory

[morgaine300]

Oh sigh.

First, the question is two years old, so I don't think OP cares anymore.

Second, this is likely school work, and sometimes they just make do with what they have, just to get the concept across, and it's not that important to use average inventory. Whatever information they have available may not have purchases. Using a perpetual method, you would not have that figure available.

If you feel that strongly about not using ending inventory, then why don't we seriously do it the right way and average all 12 months? Not likely to get a hold of that information, unless it's your own company.

[mpetemm]

I need to know how can I find the beginning inventory for company that have 410 000 sales, cost of good sold of amount of 305 000 and the beginning of inventory figure is not visible.

[Tenshi14]

These are the given:
Inventory, January 1
Raw materials - 5000
Goods in process - 2000
Finished goods - 1000

Inventory, December 31
Raw materials - 2000
Goods in process - 2500
Finished goods - 1000

How to calculate the beginning and ending inventory?

Thanks.